Maine to Tax Marijuana

Included in the final catch-all tax bill signed into law Friday by Gov. John Baldacci is a provision that taxes the sale of medical marijuana at state-sanctioned dispensaries.

“We wanted to make sure that it is taxed,” Rep. Thomas Watson, D-Bath, co-chairman of the Legislature’s Taxation Committee, told members of the Appropriations Committee in the final review of the tax bill on Wednesday. “It is one of the recommendations of Maine Revenue Service that we didn’t follow. They recommended it not be taxed, but the committee – all that were in the room, both parties – said it should be taxed.”

The decision is estimated to result in about $71,000 a year in additional sales tax revenue. Sen. Richard Nass, R-Acton, said lawmakers on the committee rejected the Maine Revenue Service position that marijuana used for medical reasons was the same as a prescription drug.

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